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Adnic reports Dh186.9 million profit in H1 despite challenging global economic conditions

The Abu Dhabi-based company said its gross written premiums in first half increased by 20.9 per cent to Dh3.23 billion compared to Dh2.67 billion for the same period in 2021

Abu Dhabi National Insurance Company (Adnic) on Wednesday said its first-half net profit hit Dh186.9 million despite challenging global economic conditions.

In a statement, the company said its gross written premiums in first half increased by 20.9 per cent to Dh3.23 billion compared to Dh2.67 billion for the same period in 2021. The overall premium retention ratio is 31.9 per cent for the six-month period ended June 30, 2022 compared to 34.3 per cent for the same period in 2021.

Net Underwriting Income

For the six-month period ended June 30, 2022, Adnic’s net underwriting income stood at Dh253.9 million, against Dh280.3 million for the same period in 2021.

General and administrative expenses in the first half stood at Dh129.0 million compared to Dh118.9 million for the same period in 2021.

Net technical profit for the six-month period ended June 30, 2022 was Dh124.9 million as against Dh161.4 million for the same period in 2021.

The company’s net investment and other income was Dh62 million for the six-month period compared to Dh87.3 million for the same period in 2021.

Steady performance

Sheikh Mohamed bin Saif Al-Nahyan, Chairman of ADNIC, said Adnic continued to deliver steady performance in the face of challenging global economic conditions.

“As we move into the second half of the year, we are optimistic about our future outlook and will continue to invest in the latest technologies to adapt to current and future market needs, as well as meet the UAE’s government aspirations,” he said.

He said Adnic delivered a robust second quarter in terms of top-line growth with gross written premiums higher by 20.9 per cent to Dh3.23 billion. Loss ratios were broadly stable despite pricing pressures in certain lines as well as normalised consumer behaviour.

“As a result, et underwriting Income for the first half of the year was Dh253.9 million. The quarter-on-quarter growth in Net Underwriting Income was 24.2 per cent, due to a well-diversified book of business. Investment Income was impacted by high mark to market volatility across several asset classes with most major asset classed down between 10 per cent and 20 per cent for the year to date.

“Our expense management continues to be strong and growth in expenses lower than premium growth, despite the continued cost from compliance such as IFRS 17 implementation and investments into new technologies and capabilities,” he said.

Stakeholders engagement

Ahmad Idris, CEO of Adnic, said: “We are proud to be one of the leaders in the UAE insurance sector which is evident in our financial performance, standard of services, technological innovation and market share. We will continue to engage strongly with all stakeholders with our various initiatives in areas including emiratisation, health & wellbeing, climate change and giving back to the local community. Over the past few months, we have renewed our partnerships with several CSR initiatives and Emirates Nature-WWF, developed a UAE national talent programme called ‘Emkanati’, and deployed our health and wellness app ‘LiveWell’ for customers.

He added: “With 2022 being the company’s 50th anniversary, we will continue to be engaged in initiatives that contribute to the betterment of society and support the UAE’s various strategic projects as both ADNIC and the country begin their journey towards the next 50 years.”

— muzaffarrizvi@khaleejtimes.com